About

TelevisionWeek is teaming up with TV industry veteran Marianne Paskowski. The blog will give Marianne a forum to convey her deep knowledge of the industry and pass along some of the juicy morsels she's hearing on the grapevine. Marianne has covered the TV industry from the inside out and top to bottom, and TVWeek's readers are bound to benefit from her sharp eyes, ears and wit. TVWeek.com invites readers to jump online, chime in and pick Marianne's brain on the latest industry news.

Categories

Marianne Paskowski



Clearance Sale for Media Stocks

April 16, 2008 11:52 AM

Caught sight of my favorite media analyst, Pali Research’s Rich Greenfield, on CNBC and he did not disappoint.

He’s kind of like Mikey, the kid in the old TV spot for Life cereal who hates everything. True to form, he bashed just about all companies in the sector, saying there’s a “clearance sale for media stocks.”

But there are seemingly no takers, with much of the sector flat at best. Greenfield said CBS, which was trading at $21.55 a share when I checked, should go out and buy a cable network and start growing something.

Why bother? Discovery Holdings Corp., with its stable of branded networks, isn’t doing that much better, trading at $21.66.

Investors want growth stocks and there aren’t any in media. The real growth, no pun intended, is in fertilizer. Potash Corp. of Saskatchewan was on fire today, trading at $195.87, up another 12% today.

And that’s why I, like Greenfield, can say I never met a media stock I liked.

Have you?

TrackBack

TrackBack URL for this entry:
http://www.tvweek.com/cgi-bin/mt/mt-tb.cgi/6986

Comments (6)

Jeff Mulligan:

Marianne--

The traditional media companies made the wrong bets and failed to see the revolution of the Internet in time to participate meaningfully. Even when they tried--like the high hopes once held for MSNBC--the broadcasters and the independent cable companies themselves failed to understand the implications of newer technologies laying waste to their traditional one-way communications and business models.

Investors, who know that some hot bets will fade away, nonetheless look for hot bets du jour--of which the traditional media companies did few if any.

Jeff

Watchdog:

Yep,
Gotta love Google today, if you were in the game. I was not.

Thanks for your post,
Marianne

Cruiser:

Yo, Blondie --

I'm surprised you're not more hopeful about media stocks. Look at the drivel on TV and think of the Bozos who run and win higher political office. Media companies are perfectly in tune with their audiences.

And no, those embittered hillbillies Hillary is pandering to in Pennsylvania don't turn just to God and guns for relief. "American Idol," "America's Funniest Videos," and "Dr. Phil" are right up there,

Cruisin' not bruisin'

Marianne Paskowski:

Cruiser,

Looks like investors have different criteria than viewers.

Think about that,
Marianne

Cliff:

Ah- broadcast media is dying a slow death. It is in its final shakes and quivers with "reality" TV. Sorry TV week – you might have to change your name to Internet Week. As we boomers sink into our couches with faltering remotes, the x, y, and z generations will only be computin’ through the wide corridors of the NET where there is powerful useable information.

Just look at the poor performance of remote controls and Ondemand. It is a throw back to early DOS program menu systems that take forever to load and present. You click a wrong button – oops – start over and wait. I am not surprised that the stocks will fade to a buck a share eventually. When did they ever do anything really innovative lately?

Park that leaky oil tanker and click through the NET.

Marianne Paskowski:

Hi Cliff,
The broadcast and cable nets do have a presence on the Internet. The problem is that ad sales on TV are far higher priced that what a pop up or tower ad gets on the Web.

Web sales are growing fast, but underrated. Look at the tape today and who's ahead? Google, Apple, Resarch in Motion.

BTW, your beloved Skype, recently acquired by eBay might now be for sale. Thought you would like to know.

Thanks for the post,

Marianne

Post a comment